Wednesday, December 1, 2010

IMPORTANT INFORMATION REGARDING THE CURRENT STATE OF CLUB LA PENSION

Dear Club La Pension Owners:

This letter is to bring you up to date on major concerns your Board of Directors is currently addressing regarding emergency conditions at your resort. Over the past two years, all buildings have exhibited some or all of the symptoms of structure deterioration or failure, envelope failures and water intrusion, sanitary sewer pipe failures, lack of adequate outside air in the building, water heater failures, chilled water pipe insulation failures, and other characteristics of aged buildings. Additionally, the water intrusions, lack of adequate outside air and failed pipe insulation has resulted in deterioration of the walls and ceilings and poor indoor air quality in many areas of the resort.

Currently, twelve units are uninhabitable because of water intrusion problems and others must be monitored during heavy rains. The expense of trying to prevent further damage and having additional units closed is rapidly growing. If the building repairs are not made within the next six to twelve months, the interiors will continue to deteriorate and the indoor air quality will continue to worsen. As a result, it is expected many of the units will be uninhabitable and the cost of repairs will only continue to increase.

At the August Board meeting, your Board approved hiring a local architect/engineering company to perform a complete building assessment and recommend repair or replacement solutions. Following that, a determination of the cost of the project and funding needs will be completed, as will an evaluation of the affects of the repairs and replacements on the operation of the resort. That determination and evaluation is expected to be completed within the next thirty days.

The Board of Directors will consider, in depth, the cost of the work that is required and the effect it will have on the owners: it is probable that a special assessment will be required and that it will be necessary to temporarily close the resort while the repairs are being made.

Realizing you may have questions, the Board has attempted to answer a couple of obvious questions:

Question: Why will the resort need to be closed? Can’t the work be accomplished and owners still use the resort?
Answer: As construction and repairs begin, the life/safety systems may be interrupted and indoor air quality will continue to be an issue. Also closing the resort allows the contractors full access to complete the repairs in an efficient and less costly manner as well as additional safety considerations for owners.

Question: If the resort is closed during my week, what happens to my vacation?
Answer: This issue is still being addressed and the Board has obtained local counsel to determine what the Association may and may not do for displaced owners during a time of emergency such as these repairs are. Please know that your Board is working diligently to find alternatives so that association owners do not lose their vacation times. More information will be forthcoming on this issue.

These are very difficult and complex issues your Board is working through but they must be addressed immediately. The Board will update all owners as we progress through this process and answer additional questions as they arise. Your Association has the responsibility to provide safe vacations and we appreciate your support and understanding as we address these serious issues facing Club La Pension.

Respectfully,

Club La Pension Board of Directors